Tax Drill - Section 179 For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2020. The taxable income of the business for the $5,600 before consideration of any 5 179 deduction. If an amount is zero, enter "0". a. McKenzie's 5 179 expense deduction is $ for 2020. His 5 179 carryover to 2021 is $ b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? McKenzie's 5 179 expense deduction is s for 2020. His 5 179 carryover to 2021 is $

Tax Drill - Section 179 For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2020. The taxable income of the business for the $5,600 before consideration of any 5 179 deduction. If an amount is zero, enter "0". a. McKenzie's 5 179 expense deduction is $ for 2020. His 5 179 carryover to 2021 is $ b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? McKenzie's 5 179 expense deduction is s for 2020. His 5 179 carryover to 2021 is $

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 26P

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McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: $ 5,600 § 179 carryover to 2024: $ 206,400 b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: $ Total cost recovery for 2023: $ X
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